Country’s Oct IIP shrinks

12 December 2011: India's industrial output sunk by 5.1 per cent in October 2011 after witnessing a sustained slowdown over the past few months, led by a steep fall in production of almost sectors, particularly manufacturing, mining and capital goods.

Factory output, as measured by the Index of Industrial Production (IIP), had grown by 11.3 per cent in October 2010. As per data released by the government, industrial output grew by 3.5 per cent in the April-October period this fiscal, as against 8.7 per cent in the same period last year. Output of the manufacturing sector, which constitutes over 75 per cent of the index, declined by 6 per cent in October, compared to a growth of 12.3 per cent in the same month of 2010. In addition, mining output declined by 7.2 per cent in October this year, as against a growth of 6.1 per cent in October last year. Production of capital goods fell sharply by 25.5 per cent in the month under review. The segment had grown by 21.1 per cent in the corresponding month of 2010. Output of consumer goods also fell by 0.8 per cent during the month under review, as against a growth of 9.3 per cent in the corresponding month of 2010.

Source: Business standard